The company has drilled seven wells to date and has two rigs that will continue Eagle Ford drilling. A recent well in Gonzales County reached a total measured depth of 14,700 ft in 24 days. The company’s current well costs run $8.5-9 million and batch completions will be used to help drive costs down further. [Read more…]

GeoResources expects it will spend approximately $120 million in 2011 and between $188 and $223 million in 2012. Between $74 and $86 million will be spent in Fayette and Gonzales Counties in 2012. Approximately 95% of the company’s capital budget is dedicated to the Bakken and Eagle Ford shale development areas.

Other highlights include:

Drilling a 15,100 ft well including a 5,000 ft lateral in 27 days for $3 million in Fayette County, TX. That’s just drilling costs. Completion costs will likely double that number.

Commenced drilling of the first of two wells on the Arnim lease in Fayette County

Will add two rigs to average a total of 3-4 rigs in 2012 in the Eagle Ford

First three wells averaged 408 barrels of oil equivalent per day over the first 30 days from the Flatonia E Unit 1H, Flatonia E Unit 2H, and the Black Jack Springs #1H

A total of 25,000 net acres in the Eagle Ford

Austin Chalk potential in Fayette and Gonzales Counties. 1st well produced 402 boe/d in the first full month and the most recent well had a 30 ft gas flare and considerable oil shows. The well will be brought to production soon and another Chalk well is planned before year-end.

Fayette County is attracting more interest and positive results from GeoResources will only fan the fire of the oil boom. Both wells produced more than 1,200 barrels per day during initial test. That’s good for anywhere in the Eagle Ford Shale. [Read more…]